Asset Management is a “Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets, and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan”. (Institute of Asset Management / British Standards Institute PAS 55: 2008).
Traditionally, an asset owner repairs an asset when it starts to malfunction or breakdown. Breakdown maintenance practice has several consequences:
• Forced to urgent repair with higher cost compared to planned repair/ maintenance
• Breakdown maintenance normally requires additional time (i.e. source information, spare parts, source trade personnel or shop etc.)
• Impact on social and family life due to unplanned maintenance
• Loss of service and production
Over the past several decades, maintenance philosophy has evolved substantially. Initial approach was “fix it when it breaks”. The approach shifted to “preventive maintenance” and; lately, it has transformed to “Risk Based Maintenance”. Big corporate companies started to establish asset management system by investing millions of dollars to save billions, but there is not a fully integrated asset management system for residential and commercial users (like residential complex, hotel, office etc.). We all desire to earn money to live in a nice and a comfortable life with our family, but we are faced with nightmares of; the furnace not working during wintery night, basement flooded with plumbing leaks or sewerage backups. These inconveniences costs money, time and comfort. Establishing an effective asset management system will help an asset owner in saving money and time as well as maximize peace of mind.
Benefits of Asset Management
An asset owner can achieve a significant benefit by implementing Asset management. Benefits might vary from owner to owner. The following are few significant benefits of Asset Care:
• Reduction in maintenance and operation cost (i.e. planned maintenance reduce labor and material cost)
• Improve assets availability in good working conditions
• Better maintenance financial planning (short-term oil change for car, and long-term maintenance i.e. changing roof or furnace in 5 years)
• Traceable maintenance history
• Enhanced satisfaction from improved functional, health, safety and environmental performance.